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Baylor Health Care System and Scott & White Healthcare on Monday completed their merger deal, forming the largest not-for-profit health system in Texas with more than $8 billion in assets and about $6 billion in annual revenue.

“Over time, patients in the communities we serve will begin seeing the new brand Baylor Scott & White Health emerge,” Joel Allison, chief executive officer, Baylor Scott & White Health, said in a statement. “We are building a new national model for health care delivery engineered to meet the demands of health care reform, the changing needs of patients and payers and the extraordinary advances in clinical care.”

Allison was CEO of Baylor, based in Dallas. Baylor is one of the largest health care providers in North Texas and Scott & White, based in Temple, is a major provider in Central Texas.

The combined organization includes 43 hospitals, more than 500 patient care sites, more than 6,000 affiliated physicians, and 34,000 employees. It will be guided by a combined team from both Baylor and Scott & White, with Drayton McLane, Jr. serving as chair of the unified board.

Baylor Health Care System plans to merge with Scott & White Healthcare, based in Temple, creating the largest not-for-profit health system in Texas, the two organizations said today.

Combined assets of the new system, named Baylor Scott & White Health, would total nearly $8 billion and include 42 hospitals, 4,000 active doctors and 34,000 employees.

The systems, now in a period of exclusive negotiations and due diligence, anticipate completing a definitive merger agreement next year.

Baylor is one of the largest health care providers in North Texas with about $4 billion in annual revenue. Scott & White, with a national reputation for quality care and efficiency, is dominant in Central Texas. Its facilities are clustered along the I-35 corridor from Waco to Pflugerville, just north of Austin, and stretch east to College Station and west to Mason.

“It’s a historic day,” Baylor president and CEO Joel Allison said in an interview about the proposed merger.

With the Affordable Care Act and all the other industry changes, Allison said the health care industry is going through a transformation.

“We have the opportunity to create that new mode of health care that others will be looking to,” he said.

Allison said the two organizations have been in discussions about a possible merger for months. He said the new organization would continue Baylor’s century long tradition as a “Christian ministry of healing.”

The Baylor Health Care System will close its 71-bed hospital in southwest Fort Worth by May 1, in response to a “level of activity that was consistently rather low,” an official said Thursday.
Services now provided at Baylor Medical Center at Southwest Fort Worth on Oakmont Blvd. will be merged into Baylor All Saints Medical Center. That nationally recognized, 525-bed facility is about 15 minutes away, in Downtown Fort Worth, said Steve Newton, president of the western region of the Baylor Health Care System.
The roughly 170 workers at the Southwest Fort Worth community hospital, which became part of the Baylor system in 2002, will be encouraged to apply for a job among the 800 open slots in North Texas, said Nikki Mitchell, a spokeswoman for the Dallas-based nonprofit health system said.